Lots of people buying property are wondering the same thing: can you buy property worth more than 45 lakh Rupees, or between 20 and 45 lakh Rupees, without a PAN? The answer now depends on a specific amount. While Form 97 has made the rules easier to understand, they don’t apply to everyone in the same way.
The Income Tax department in India has replaced the older Form 60 with Form 97 for people who don’t have a PAN and need to do certain things. This change is part of a larger effort to make following the rules easier, more done on computers, and with less chance of mistakes.
Form 198 has replaced Form 61 as well. Those who have to report information will combine all the declarations and send them in at set times, which should greatly reduce the number of forms that are filed each year.
What changed with Form 97 and Form 98
These new procedures are based on the Income Tax Act of 2025 and the Income Tax Rules of 2026, and will start on April 1st, 2026. The main idea behind the changes is to have simple rules, standard ways of filling things out, and to use technology as much as possible.
Form 97 is the statement someone without a PAN fills out to go ahead with certain transactions. Form 98 is the summary of statements that the reporting organization sends to the tax department for all the declarations they’ve received.
The tax department believes they will get 80 to 85% fewer of these filings once the new process is working smoothly. This is because Form 97 will only be needed for a smaller number of transactions.
Another significant change is that some things that were previously included in the declarations are now left out. For example, payments for buying foreign money, buying bank drafts with cash, and paying for prepaid payment cards are no longer part of this.
Can you buy property without a PAN? Value decides
When it comes to buildings and land, the rule now focuses on the price or the stamp duty value. If the value is over 45 lakh Rupees, you must have a PAN. In these cases, Form 97 can’t be used and the buyer needs to get a PAN before the sale goes through.
If the value is more than 20 lakh Rupees but no more than 45 lakh Rupees, someone without a PAN can complete the purchase by filling in Form 97. The person registering the property (or other reporting organization) will collect the statement and do the “Know Your Customer” checks.
This rule based on the price is in Rule 159 of the Income Tax Rules of 2026. It clearly defines the point at which more expensive property purchases will always be tracked using a PAN.
Don’t forget that all the other legal requirements for property also still apply. You will still need to pay stamp duty, register the property, prove where the money came from, and the lender will do their own investigations, alongside the PAN and Form 97 rules.
Using Form 97 for property between Rs 20 lakh and Rs 45 lakh
If you don’t have a PAN and you are buying or receiving property in this price range, Form 97 is how you follow the regulations. You make this statement at the time of the transaction, not afterwards.
To support the statement, you’ll need to provide evidence of who you are, where you live, and your date of birth (or the date the company was started). The tax department has made the information needed to be provided standard to reduce questions and disagreements.
Many buyers will likely do the following:
Tell the person selling the property, the builder, or the registrar that you will be using Form 197.
Have your “Know Your Customer” paperwork ready to prove your identity, address, and date of birth.
Fill out and sign Form 97 when you register the property or make the payment.
Make sure the reporting organization accurately records your information for their Form 98.
Buyers should also think about whether getting a PAN is a good idea. Having a PAN can make banking, investments, and filing your taxes easier in the future. You don’t have to have a Permanent Account Number (PAN) for property transactions costing between 20 and 45 lakh rupees.
Who can use Form 97, who cannot
Form 97 is for people, or other eligible parties, who don’t have a PAN and are doing certain things as listed in Rule 159. It’s not available to just anyone.
Firms, companies, the central and state governments and consular officers, and non-residents in some situations are not allowed to use it, or don’t need to use it. However, a foreign company that doesn’t make any money that’s taxed in India can use Form 97 to open a bank account or make a fixed deposit at a bank within an International Financial Services Centre.
Generally, if the law already says you need a PAN for something, Form 97 isn’t a substitute. So get a PAN first in those cases.
Now, Form 97 is only needed for a smaller number of six specific things: opening a bank account, paying over 1 lakh rupees in cash to a hotel, restaurant, community hall, reception venue or event planner, making a fixed deposit at a bank, starting a relationship with an insurance company (unless your insurance payments are under 50,000 rupees), buying or selling property between 20 lakh and 45 lakh rupees, and buying or selling other goods or services for over 2 lakh rupees in a single purchase.
Other transactions covered by Form 97 and those that need PAN
For many other things, a PAN is required, and Form 97 won’t work. These include buying or selling a vehicle for more than 5 lakh rupees, applying for a credit card, opening a demat account, buying mutual funds for over 50,000 rupees, purchasing debentures or bonds from a company for over 50,000 rupees, buying bonds from the Reserve Bank of India for over 50,000 rupees, depositing or withdrawing over 10 lakh rupees in cash at a bank, deals to buy or sell stocks for over 1 lakh rupees, and buying or selling shares in a company that isn’t publicly listed for over 1 lakh rupees. If you’re in one of these categories needing a PAN, sort out your PAN details first – Form 97 won’t be accepted.
When you use Form 97, someone without a PAN fills it out at the time of the transaction. You don’t have to send in anything later.
The organization doing the transaction (like the bank, registrar, or insurance company) collects all the Form 97s and sends in Form 98 twice a year. They’re due by October 31st for forms from April to September, and by April 30th of the next tax year for forms from October to March.
Filing timelines, documents, and practical tips
To avoid problems, get your documents ready. You will need something to prove your identity, your address, and your date of birth (or the date the company was formed). Make sure the names, addresses and dates are the same on all your documents.
Being accurate is important. Even small errors in spelling, how the date is written, or your address can cause issues with your identification. Ask the organization using Form 97 to show you what details they’ll be putting into Form 98 so you can check they’re correct.
It helps to be prepared for online processes. Many places will have online forms and will want you to upload your documents. Have clear scans of your documents, make sure you can get One Time Passwords (OTPs) on your phone and by email, and be ready to confirm your details right there and then.
If the price of the property is nearly 45 lakh rupees, check with the registrar to see how any extra costs change the amount they’re using to work things out. If the total goes over that amount, you’ll need a PAN, and Form 97 won’t be enough.
Basically, for property costing over 45 lakh rupees, get a PAN before you buy. For property between 20 and 45 lakh rupees, you can buy it without a PAN by filling in Form 97 and giving the required identification documents. The aim of the new system is to be simpler, easier to understand and easier to follow.
